Regulatory Uncertainty And Corporate Risk-taking

In 1990,China successively established the Shanghai Stock Exchange and the Shenzhen Stock Exchange,which symbolized the emergence of our country’s official securities markets.After the establishment of the China Securities Regulatory Commission two years later,under the supervision and guidance of the CSRC,China’s securities market has moved towards a perfect and standardized development path.The policy orientation of my country’s capital market is relatively obvious,and the policies and systems promulgated by the state affect the rise and fall of the stock index to a large extent.As the "gatekeeper" of the capital market,the China Securities Regulatory Commission’s regulatory policies and measures can even cause volatility in the securities market.The "change of coaches" of the China Securities Regulatory Commission has attracted the attention of the capital market.Since 2008,the China Securities Regulatory Commission has served as the chairman of the China Securities Regulatory Commission for a total of five terms,from the fifth chairman Shang Fulin to the ninth chairman Yi Huiman.During different CSRC chairmen’s tenures,their reform and improvement measures and regulatory core of the securities market are also different,which also shows that the change of CSRC chairman is accompanied by high regulatory uncertainty.In my country,the China Securities Regulatory Commission directly guides and supervises the development and direction of the capital market.When the leadership of the China Securities Regulatory Commission changes,the new leaders will often introduce new regulatory rules and measures,and they will be accompanied by fluctuations in the intensity of supervision.These changes will affect the The decision-making behavior of micro-enterprises in the capital market has a certain impact.At present,the literature on the supervision of the CSRC is mainly limited to discussing the impact of specific regulatory policies or regulatory measures on the micro-behavior of micro-enterprises,and rarely studies the impact of the change of the chairman of the CSRC on the micro-behavior of enterprises from the overall level.Therefore,it is of great significance to study the impact of regulatory uncertainty brought about by the change of the CSRC chairman on corporate behavior.The level of risk-taking is an indicator used to measure the risk decision-making behavior of enterprises,representing whether enterprises are willing to take high risks to obtain higher returns when faced with decisions.When faced with venture capital decisions,if the company’s risk tolerance level is high,then the company will tend to take a higher risk and invest in highbenefit projects;enterprises with a lower level of risk exposure will be relatively conservative and rarely invest in high-risk projects.At present,there are many papers that explore the influencing factors of enterprise risk-taking from internal and external perspectives.As one of the uncertainties in the external environment,whether regulatory uncertainty will also have an impact on the risk-taking of listed companies.This thesis sorts out the literature on the influencing factors of CSRC supervision and the level of corporate risk-taking,and studies the impact of regulatory uncertainty on the level of corporate risk-taking by taking the change of the chairman of the CSRC as a natural experiment.Starting from the theory of opportunity expectation,financing constraint theory,principal-agent theory and other theories,empirical research is used to study the relationship between regulatory uncertainty and enterprise risk taking.And further analyze the relationship between regulatory uncertainty and enterprise risk taking,and introduce financing constraints as an intermediary variable.In addition,the relationship between the two may also be affected by different internal characteristics of the company.Therefore,in the further analysis,this paper explores the influence of internal heterogeneity factors such as the nature of property rights,ownership structure,and company growth on the relationship between regulatory uncertainty and corporate risk-taking.The empirical research of this paper shows that:(1)When the chairman of the CSRC changes,the regulatory uncertainty will increase,that is,the uncertainty of the regulatory policy will increase,and the supervision will increase.Regulatory uncertainty reduces the level of risk taking by businesses.(2)When the chairman of the CSRC changes,the regulatory uncertainty of the environment in which enterprises operate will increase their level of financing constraints,thereby inhibiting their venture capital activities and reducing their risk-taking level.(3)Compared with private enterprises,regulatory uncertainty has a more significant effect on reducing the risk-taking level of state-owned enterprises.(4)Compared with companies with low ownership concentration,regulatory uncertainty has a more significant effect on reducing the risk-taking level of companies with high ownership concentration.(5)Compared with companies with high growth potential,the phenomenon that the level of corporate risk-taking caused by regulatory uncertainty is more significant in companies with low growth potential.